Alex Leigl believes that there is a similarity between the current state of Bitcoin and the state of oil in the 19th century.
With the halving in Bitcoin a few weeks ago, miners started producing 6.25 BTCs per block, not 12.5 BTCs. This number will continue to drop with every halving, and it will become more and more difficult to find one full Bitcoin.
Many cryptocurrency analysts think that the price of Bitcoin will eventually take flight. According to analysts, especially PlanB, who uses the stock-flow (S2F) model, we can see that the price of Bitcoin has risen above $ 100 thousand by the end of next year.
Experts say that the supply of Bitcoin is limited and say that the price will go on a flight, but Bitcoin has not yet been able to act fully. The price of Bitcoin, which reached up to 20 thousand dollars in December 2017, is now even lower than half of it. So why isn’t Bitcoin price still moving?
Layer1 CEO Alex Leigl says there may be a relationship between Bitcoin and oil at this point. In his view, the current state of Bitcoin is reminiscent of the state of oil in the late 19th century. Because at that time, it was known that oil resources were limited, oil was used in certain areas of life, but oil was not as valuable today. The reason for this was that oil use was not very intense.
According to Forbes’ report, Leigl therefore thinks that there is a similarity between Bitcoin in 2020 and oil in the 1890s. According to his comments, Bitcoin also has limited supply, is used only in certain areas of life, but still does not have a very high price. According to him, oil has gained value with the growth of the automobile sector; Bitcoin will gain value as the usage areas increase with the number of users.